Factsheets Back
31 . 08 . 2019
Market Overview


In August, Lebanese Government Eurobonds’ prices witnessed a massive drop after a downgrade to CCC by Fitch and notice period of 6-months before a potential downgrade by S&P took effect, along with heavy political tension; prices dropped between USD 4 and 10 from the short end until the long end of the curve, with the Treasury curve inverting and shifting upwards. CDS levels for 5 years saw a huge jump by around 275 bps reaching 1,250 ask-spread. In the GCC, 5 year CDS levels remained stable. Moody’s says Qatar’s credit metric to remain consistent despite boycott; and that it expects GCC governments to increase spending and delay austerity measures at current oil price levels. It also mentioned that Bahrain’s credit profile reflects a weak balance sheet and susceptibility to external and liquidity risks. UAE bank lending grew 5.1% YoY in July.